Government to lift diesel subsidies for tourism sector in May

Government to lift diesel subsidies for tourism sector in May

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Tue, 22/01/2013 - 15:27

Minister of Planning and International Cooperation Ashraf al-Araby has announced that the Cabinet will remove subsidies on diesel fuel sold to the tourism sector starting in May.

“There has been negotiations with tourism authorities, such as the Tourism Chambers Union and the Ministry of Tourism, on removing subsidies for diesel oil,” Araby told the official MENA news agency on Tuesday.

Egypts is attempting to restructure its subsidies to reduce its budget deficit, which the government expects to reach LE200 billion during the current fiscal year.

The Cabinet is working on a plan to help tourist establishments use natural gas as alternative to other forms of fuel. Egypt produces and exports small amounts of natural gas, but in 2012 began importing gas to meet increasing local demand and fulfill export contracts.

The Cabinet will also start rationing gasoline in April to private cars, providing 1800 liters annually to ever 1600cc vehicle.

Petroleum Minister Osama Kamal said in October that delaying subsidy restructuring would further consume state resources.

Edited translation from MENA